CHICAGO, June 22, 2021 — GCM Grosvenor (Nasdaq: GCMG), a global alternative asset management solutions provider, today released the 2020 Labor and Economic Impact Report for its Labor Impact Fund (“LIF” or the “Fund”) which focuses exclusively on infrastructure investments in the United States and Canada.
The 2020 Labor and Economic Impact Report examines the impact of the Fund’s initial four investments, including approximately 2.9 million union work hours created during construction, and approximately $2.2 billion in regional economic impact. The full report can be found here.
“We believe that collaborating with organized labor to create compelling infrastructure investment opportunities and a positive impact for union workers is a smart strategy,” said Michael Sacks, Chairman and Chief Executive Officer of GCM Grosvenor. “We continue to have conviction in the initial fund investments from a risk reward perspective and are thrilled with the labor and economic impacts.”
The Fund’s strategy is designed to be a collaborative approach to infrastructure investing that relies on a partnership with key stakeholders, including organized labor and government, in an effort to optimize project execution.
“Identifying those stakeholders who can be impacted by an investment opportunity and bringing them into the process is critical to helping mitigate risk and improve investment outcomes,” said Jorge Ramirez, a GCM Grosvenor Managing Director. “It is an approach that can enhance the opportunity while benefiting workers and the communities in which they live.”
The Labor and Economic Impact Report, which will be updated and released annually, also cites the extensive revenue generation the LIF investment activity has created for governments at every level. According to the report, approximately $260 million of tax revenues will be realized through these four investments.
“Infrastructure investing can have a profound impact on a community,” said Matthew Hynes, Managing Director and Head of Labor and Government Strategies for GCM Grosvenor. “From job creation to new tax revenues for government, the economic impact can be felt throughout a region.”
About the Labor Impact Fund
The Labor Impact Fund originates and executes infrastructure projects that leverage the inclusion of union labor as a contributing factor to enabling attractive risk-adjusted returns. The goal of the strategy is to find compelling infrastructure investment opportunities that can be generated through close cooperation across labor, government, and private capital. The Fund held its final close on September 7, 2020, with $893 million in committed capital. For more about GCM Grosvenor’s Labor Impact Strategy, visit https://www.gcmgrosvenor.com/labor-impact-investing.
LIF has made four investments to date:
- In November 2020, LIF committed $70 million in equity capital to Vantage Data Centers’ newly established growth platform to develop, construct, and lease data centers.
- In May 2020, LIF agreed to provide $85 million in debt financing to Bakersfield Renewable Fuels for the retooling of the former Alon oil refinery in Bakersfield, California.
- In December 2019, LIF invested $155 million to partner in the development and construction of the Long Ridge Energy Terminal.
- In 2019, LIF announced a partnership for the development of a cold storage platform across the U.S. West Coast, with the first development expected to be operational by the end of 2021.
About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $65 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm is in its 50th year of operation and is dedicated to delivering value for clients in the growing alternative investment asset classes.
GCM Grosvenor’s experienced team of approximately 500 professionals serves a global client base of institutional and high net worth investors. The firm is headquartered in Chicago, with offices in New York, Los Angeles, Toronto, London, Tokyo, Hong Kong, and Seoul. For more information, please visit: gcmgstg.wpengine.com.
Source: GCM Grosvenor
Tom Johnson and Will Braun
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